Last week’s announcements from the latest EU emergency summit did not result in much of a change in the nine-year government bond yield as calculated by Bloomberg. There has been a slight drop over the past couple of weeks and yesterday’s close at 8.15% was the lowest since the 13th of October.
Last week’s agreement might have had little effect but Greek Prime Minister George Papandreou’s announcement last night of a referendum on the deal has had an effect.
This isn’t a big jump and does not have much significance. It is not significant because yields are still lower than they were last Wednesday (and of course the significance is reduced because we do not plan to borrow from these markets for at least another year).
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